Please consider the following statements related to allocation of support department costs:

I.  T

he total amount allocated among departments

will differ in total depending on the cost allocation method used

II. A

mounts allocated to departments will most

likely differ depending on the cost allocation method used

III. The reciprocal allocation method 

allocates support-department costs to other

support departments and to operating departments in a sequential manner that

partially recognizes the mutual services provided among all support departments

IV. The

 direct method is simple for

managers to compute and understand relative to the reciprocal method

Which of the following is TRUE?